How Does United States Cellular Company Work?

US Cellular operations primarily involved offering wireless voice and data services. This included mobile broadband, messaging, and fixed wireless access (FWA). The company also sold wireless devices and accessories.

The foundation of US Cellular operations was its wireless network. As of March 31, 2025, this network consisted of 7,009 cell sites, with 4,413 of these being owned towers.

UScellular actively deployed its 5G mid-band network to enhance both mobility and fixed wireless services. Partnerships with companies like Ericsson for 5G router technology and Samsung for 5G mmWave and vRAN solutions were key to expanding rural 5G coverage and improving network performance.

The company differentiated itself through a regional focus and a commitment to quality network and customer support in often underserved areas. However, with the sale of its wireless operations, UScellular's future business, Array Digital Infrastructure, Inc., will concentrate on managing its 4,400 owned towers and retained wireless spectrum, shifting its value proposition to infrastructure management.

In May 2024, a pivotal agreement was made to sell substantially all wireless operations and select spectrum assets to T-Mobile US, Inc. for $4.4 billion. This transaction, anticipated to conclude by mid-2025, follows a strategic review initiated in August 2023 to enhance shareholder value. Additional spectrum licenses were also slated for sale to AT&T and Verizon.

The company faced operational challenges, including subscriber losses, with total retail connections decreasing to 4.377 million in Q1 2025 from 4.487 million in Q1 2024. However, improvements were noted in postpaid handset net losses and prepaid net additions during the latter half of 2024.

In response to market conditions, US Cellular demonstrated financial discipline. Capital expenditures saw a significant 60% reduction in Q1 2025, dropping to $53 million compared to the same period in 2024. The company also actively managed its capital by repurchasing 328,835 Common Shares for $21 million in Q1 2025.

The strategic divestiture marks a significant pivot, with the company set to become Array Digital Infrastructure, Inc. This transition allows for a renewed focus on its competitive edge in owning and operating a portfolio of 4,400 towers and monetizing its retained spectrum assets. This strategic move is key to understanding how US Cellular works going forward.

As the fifth-largest carrier, United States Cellular Company navigated a market heavily dominated by three major national providers. This intense competition, coupled with the substantial capital required for network upgrades, presented significant operational hurdles. The company also contended with the need to attract and retain customers in a price-sensitive environment.

US Cellular operations were impacted by several key risks, including aggressive price competition and the ongoing need for network technology investment. A notable risk was a $136 million spectrum license impairment in Q3 2024, primarily affecting its high-band spectrum. Regulatory shifts and the consolidated nature of the wireless industry also posed continuous challenges.

The company is undergoing a significant strategic shift, with a planned name change to Array Digital Infrastructure, Inc. and a ticker symbol change to AD, effective August 1, 2025, following its transaction with T-Mobile. This new entity will concentrate on managing its 4,400 owned towers and monetizing its remaining wireless spectrum assets.

Upon the transaction's closure, Array Digital Infrastructure, Inc. anticipates declaring a special cash dividend estimated between $22.50 and $23.75 per Common Share. Douglas W. Chambers will lead the company as interim President and CEO, guiding the transition and strategic focus on its infrastructure and spectrum holdings in the evolving 5G landscape.